XIAOMI(HK:01810) Huaan Securities·2025-03-21 14:15Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance in Q4 2024 exceeded expectations, with revenue reaching 109 billion yuan (yoy +48.8%) and Non-GAAP net profit of 8.32 billion yuan (yoy +69.4%) [4] - The company has raised its 2025 automotive delivery target to 350,000 units, reflecting strong demand and improved production capacity [4][5] Summary by Sections Q4 2024 Performance - Overall performance: Revenue and profit both exceeded Bloomberg consensus expectations, with Q4 revenue at 109 billion yuan (yoy +48.8%), surpassing expectations by 4.4%; Non-GAAP net profit was 8.32 billion yuan (yoy +69.4%), exceeding expectations by 27.2% [4] - Business segments: 1. Mobile business: Revenue of 51.31 billion yuan (yoy +16.0%), gross margin at 12.0% [4] 2. IoT business: Revenue of 30.87 billion yuan (yoy +51.7%), gross margin at 20.5% [4] 3. Internet business: Revenue of 9.34 billion yuan (yoy +18.5%), gross margin at 76.5% [4] 4. Smart automotive and innovative business: Revenue of 16.7 billion yuan, gross margin at 20.4%, exceeding expectations [4] Automotive Business - Automotive sales and profitability significantly exceeded expectations, with nearly 70,000 vehicles delivered in Q4, surpassing the expected 60,000 [4] - The company has improved its automotive gross margin to 20.4%, up 3.3 percentage points from the previous quarter [4] - The company is focusing on enhancing automotive production capacity, with plans for a second factory to be operational mid-year [4] - The automotive business's adjusted net loss narrowed to 700 million yuan in Q4, down from previous quarters [4] Mobile Business - The average selling price (ASP) of mobile phones reached 1,202 yuan (yoy +10.1%), marking two consecutive quarters of double-digit growth [4] - Future targets include achieving a market share increase of 1% annually in China and breaking into the ultra-high-end market (above 6,000 yuan) within five years [4] IoT Business - The IoT business experienced over 50% year-on-year growth in Q4, driven by strong performance in home appliances and tablets [5] - The overseas market for IoT is expected to be twice the size of the domestic market, indicating significant growth potential [6] R&D and Future Projections - The company plans to invest 30 billion yuan in R&D in 2025, with approximately 25% allocated to AI-related projects [7] - Revenue projections for 2025, 2026, and 2027 are 492 billion yuan, 626 billion yuan, and 731 billion yuan, respectively, with corresponding adjusted net profits of 38.3 billion yuan, 54.2 billion yuan, and 67.3 billion yuan [8][10]